March 2008

In our first issue of the A+ RPO e-newsletter, we discussed how to define Recruitment Process Outsourcing (RPO).  Fundamentally, RPO is a form of business process outsourcing where an organization transfers (or outsources) all or part of its recruitment activities to an external service provider.  Further, two questions need to be addressed in order to develop a comprehensive definition of RPO:

1.  Where will RPO be used?  RPO solutions can be used for a particular geographic region of your organization, division, department, or job position.  RPO can also be "event-based" as for a start-up or "enterprise-wide" where the RPO provider carries out all recruitment activities across the entire organization.

2.  What RPO services will be used?  After determining where RPO will be used, the process and service offerings can be considered.  One or more of the recruitment activities can be transferred to a third-party or the entire "end-to-end" process can be outsourced.  The full end-to-end RPO process begins with candidate requisition and extends through orientation and onboarding.

Now that a clearer explanation of RPO has been presented, the next question becomes:

3.  Is RPO right for you?  This issue of A+ RPO will help you answer this question, provide important elements to consider about an RPO engagement, and will give you tips on how to select an RPO provider.

We hope you enjoy this first issue and look forward to those that follow.

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Is RPO Right For You?

So how do you know if RPO is right for your organization?  If you answer yes to many of the following questions, RPO is likely a viable solution that warrants further research:

  • Do you need to improve the quality of hire?

  • Would it be helpful to identify factors that may be impeding your current recruiting/hiring process?

  • Is your organization anticipating growth, resulting in an increased quantity of hires?

  • Is there a need to accelerate your recruiting process?

  • Is your organization concerned about legal compliance and hiring defensibility?

  • Does your organization find it difficult to attain enough qualified candidates to fill available positions?

  • Is there a need for the HR staff to focus on increasing core strategic initiatives?

  • Do you find it difficult to manage demand fluctuations and control your fixed costs?

The decision of whether or not to engage in RPO is a significant strategic move, one that should be given the attention of any other major corporate decision.  If your organization is considering moving forward with RPO, here are a few basic guidelines to consider:

  1. Know yourself.  It is essential to understand the current state of your organization and areas for improvement.  Begin by gathering existing data and statistics involving your organization's current recruitment and hiring process.  A few metrics to research are cost of hires, time to fill, and the amount of support needed at each step of the recruitment process.  By doing an assessment of your company's current state, future results can be appropriately measured against predetermined goals.

  2. Identify your expectations.  Using the definition of RPO provided above, determine specifically where RPO will be used.  Do you want to use RPO for a specific division or department of your organization?  Next, decide in what RPO service offerings you are interested.  Determine exactly what you hope to achieve with the RPO relationship and communicate that to the potential partner.

  3. Look for similar values.  You must value partnership alignment with your provider.  Since you will be working closely with the RPO provider, take care to notice if the company culture and philosophy will be a good match.  Read the additional tips below for more information on what to look for in selecting the right RPO provider.

  4. Maintain communication.  Uphold communication at the beginning of the relationship, throughout the RPO process, and never underestimate the amount of communication necessary for the initiative to be a success.  Those relationships with the best culture match and strong channels of communication will certainly achieve the best results.

  5. Commit to Teamwork.  The decision whether or not to engage in RPO is a major strategic agreement that requires full buy-in from all parties involved.  In order for RPO to be successful within your organization, top leadership must buy into the change strategy and it must follow through to those implementing the change.  Both the RPO provider and client company should be entirely committed to achieving success.

In addition, some final factors to look for include:

  • Technology.  Though RPO is a highly consultative function, be sure the technology capabilities are equally as impressive.  And don't settle for status quo - there should be dedicated technical resources working to constantly improve and advance the technology used.

  • Assessment.  While an organization may have a thorough process plan, it's essential that it also has a comprehensive assessment system guiding it.  Process is only approximately 40% responsible for success - assessment makes up the remaining approximately 60%.  This is the only way to maximize your results - process alone will not achieve your goals.

  • Candidate Sourcing.  The chosen RPO firm should demonstrate a proactive approach in finding a large pool of candidates.  Relying on a set standard of sources is not enough - the firm should be searching for additional candidate sources on a regular basis.

  • Customizable.  This is definitely not a one-size-fits-all activity.  Choose a firm that provides a high level of customization - not just from client to client, but also project to project.

  • Legally Defensible.  Your RPO provider should be knowledgeable about current and even pending legal requirements with respect to recruiting and hiring.  While the firm is acting on your behalf, your organization is ultimately responsible for any missteps or violations.

Bottom line:  Begin the search process with definitive goals, communicate what you hope to achieve, and give RPO strategic focus and attention.  Before making a decision, consider all of the options and look for a true return on investment.  Contact us at Select International if you have any questions about recruitment process outsourcing.

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